ProfitFactor=(%Wins*AvgWin) / (%Losses*AvgLoss)
It should also incorporate commissions.
If PF>1, technically you have an edge. The bigger it is, the bigger your edge and the smoother your equity curve will be. For example PF of 2 will always give you an equity curve to kill for.

Edge is the word for Prop firm owner who try to persuade people to deposit 25k into their firm. Statistically, minimum 10k goes to Prop firm owner's pocket (commissions before they quit) no matter what the market does...
That is the real edge!

Edge is something real not percieved. An edge is something one person or group of people can get and others can't. For example, earning the spread is an edge. Why? Because you can't do it, market makers can. Another edge is borrowing cost. If one person has to pay 50 basis pts over libor and another person has to pay 150 basis pts over libor, that is an edge. This is why I get a kick out of people who think their TA or magic indicators give them an edge. That is not edge. You can't tell me that because you are really good at reading candlesticks that that is your edge. Doesn't work that way. Another edge is execution, both speed of excecution and personal brokers. But that edge is borderline and kind of in a grey area.

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More locals or M/M's have run several thou into several mil than all other market participants combined. However, that being said I do believe there is a soft edge available on the screen.